Key points
  • For former Citi customers on the transaction account, fee-free international transactions and $0 foreign ATM fees will get the chop from 5 November.
  • They become 3.5% and $5 respectively. 
  • The 0% overdraft feature is also being bumped to 20% p.a.

Citi transaction account customers who found themselves on special NAB Classic accounts after 2021's billion-dollar takeover saw their travel perks grandfathered in for nearly two years. 

However now that's no longer the case.

In an email to customers on Monday morning, NAB informed the Citi interlopers their benefits will be axed come 5 November.

These included fee-free international transactions and free foreign ATM access (the host ATM still likely applies a fee, however). 

Soon, NAB will impose international transaction costs of 3.5% of the settled AUD amount and $5 respectively. 

It will also charge $1 for a balance inquiry made overseas.

At one pre-acquisition time, Citi customers also enjoyed a complimentary bottle of wine when they dined and paid with the card at selected restaurants. 

They also experienced free ATM access at many Citi-branded ATMs worldwide. 

The switch from Mastercard to Visa also meant slightly different overseas experiences for some.

For example, Mastercard holders can withdraw for free in 7-Eleven ATMs in Japan. 

"We take a considered approach when making any changes to our rates or fees, as we understand the impacts these changes can have on our customers," NAB's email to customers read.

We've needed to make this decision to help ensure we continue to provide a safe, secure and convenient banking experience."

What else is changing for ex-Citi customers? 

Former Citi customers currently have a 0% overdraft rate on their NAB Classic and Reward Saver accounts which, from 5 November, is being bumped up to 20% p.a. 

Those who have a grandfathered Citi savings account currently see interest rates of 4.65% p.a. on balances up to and over $1 million.

This rate consists of a base rate of 1.90% p.a. and a 2.75% p.a. bonus rate, applicable should savers make one deposit and no withdrawals in a month.

From 5 November they will be moved onto a NAB Reward Saver account which, at the time of writing, advertises a rate of 4.10% p.a., provided the same bonus criteria is met. 

However, NAB will retain Citi's 4.65% p.a. rate on a special variation of the NAB Reward Saver account for migrated Citi customers.  

What else is out there for travellers?

The changes for former Citi customers have been met with expectedly miffed feedback online.

"Kill the only reason people use the product. Guess I'll need to search here for alternatives," one user wrote on the Whirlpool Forums.

"It's called enshittification. Was an absolute certainty to happen," another wrote more bluntly. 

However there are plenty of other banks and debit cards out there that feature zero international transaction fees and free foreign ATM access (host ATM charges notwithstanding):

  • NAB's own ubank is on the Visa platform
  • Macquarie's transaction account uses Mastercard and currently bears a 2% p.a. interest rate
  • Bendigo-backed Up uses the Mastercard platform
  • ING also has a Visa debit card that waives international and ATM fees provided monthly criteria is met

Editor's note: A previous version of this article suggested Citi savings account customers would see their interest rates fall following the migration to NAB's Reward Saver account. This was incorrect.